Everyone using cab services once or for a while has thought about how much do cab drivers working for Uber do actually earn? How is it even calculated? And if you are one aspiring cab driver then this question surely strikes a chord with you. Let’s get to the answer then:
So, if you are a resident of US and you are curious to know the scenario here, then it works pretty good based on getting paid on a per hour basis. If I am a driver working for Uber in the US, then my earning depends on the number of rides I take per day resulting to rides per week. So, If I take 30-40 rides per week, I am earning around $900- $1500 per week. How?
Suppose, a customer booked a ride from Sears Tower in Chicago to Navy Pier in Chicago i.e. 3 miles.
The customer is charged on the basis of Time and Distance! The time you are in the cab “t” for covering a distance “d” is how the total fare is calculated.
Calculation of total fare:
Base Fare in Chicago (May differ from city to city) is: $1.70
Fare per minute in Chicago is: $0.20= $0.20*20 (If the ride takes 20 minutes)
Cost per mile for the distance to cover: $0.90*3 (Distance is 3 miles)
Additional Fee (Booking Fee) : $1.20
Total Fare– $1.70 + $(0.20*20) + $(0.90*3) + $1.20 = $9.6 which will be estimated on assumptions else it will cost around somewhere between $12-$14.
This was the calculation how much the customer will be cost. Out of this amount, let’s take it to be $15. Not all amount is transferred to Uber driver’s account. Uber has to make a commission cut for itself as well. Uber charges 20% of the final amount. So, 20% of $15 will be $3. At the end, Uber driver makes $12. This is excluding the fact that the driver needs to go through a lot of other expenses as well.
What are those additional expenses?
The driver needs to take care of his car by maintaining it, making regular car checkups, Gas fuel, Insurance, Toll, permit, license fee and many such expenses.
After cutting down for these expenses we come down to $10 may be for a particular ride on an average. In big cities like New York, San Francisco the cab ride costs around $20-25 per hour.
What about the surge pricing?
Yes, surge pricing is yet another factor that helps the cab drivers earn more than usual on a particular time of the day or place. Surge pricing means increase in the cost of the ride when car supply is less at a particular place and time but demand from the customer is more. In such case, the customer is charged extra. Supposedly, 1.3 times surge pricing can be charged on a particular time. Driver may earn $16 for the same ride for which he was earning just $12.
If you work 30-40 hours a week, you are cutting a big edge off the cost for yourself. Working for more hours, makes you earn more. You bound to get yourself more surge pricing or long distance rides which again helps you earning more.
Sometimes, you may also get paid by the generous customers for giving them an amazing ride. This tip is not provided by the customers through the Uber app but is given to you directly. So, that money counts your own.
In India, you have a similar concept.
Base Fare: Rs. 35
Cost per min of the ride: Rs. 1/min
Cost per km: Rs 6/km
Calculation for a distance of 8 km will be: 35+ 1*30 + 6*8= Rs. 113
Out of which Uber makes it own share and pays the rest to the driver.
Taking all aspects into consideration, you realize that to earn more you have to be More Creative and Smart in the ways you get rides for yourself. Working endlessly alone, won’t help. You need to gather tricks that can help you make an edge over the others. Hope the article helped you out with the same!!
Safe Riding!! 🙂
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